Showing posts with label government. Show all posts
Showing posts with label government. Show all posts

Thursday, April 20, 2023

Washington Irving on American public mind

Governed, as we are, entirely by public opinion, the utmost care should be taken to preserve the purity of the public mind. Knowledge is power, and truth is knowledge; whoever, therefore, knowingly propagates a prejudice, willfully saps the foundation of his country’s strength.

 

Washington Irving, The Sketch-Book of Geoffrey Crayon

Wednesday, December 14, 2022

Keynes on Money

The main tenet of liberal socialism is that the state should cut the cord between money and time by taking over as much as three quarters of a country’s capital, bringing the frantic activities of saving and investment that plague capitalist societies under public ownership and control. In tandem with low interest rates and prohibitions on individuals’ and firms’ taking their money out of the country, the state’s management of savings and investment would achieve four goals. First, it would create full employment, which Keynes believed a capitalist economy could not bring about. Second, by funding investments in housing, transportation, and energy, the state would meet social needs that had long been neglected because greater profits were to be had elsewhere. Third, the state would end the scarcity of capital. Keynes thought that the possessor of capital was a social parasite, a “functionless investor” who was able to make money simply because only he had it to lend, much like a feudal landlord in possession of land. The capitalist also had “cumulative oppressive power,” issuing verdicts of life and death to workers and dictating policy to states. Because scarcity was the source of the capitalist’s parasitic power, ending that scarcity would lead to the “euthanasia of the rentier.”

Last, the worthiness of the state’s investments would not be measured by their rate of return but by their contribution to social well-being. Though Keynes imagined a variety of public goods that the state would bring about through its investments, the most important of those goods, for him, was the Smithian virtue of social intercourse:

Why should we not set aside, let us say, £50 millions a year for the next twenty years to add in every substantial city of the realm the dignity of an ancient university or a European capital to our local schools and their surroundings, to our local government and its offices, and above all perhaps, to provide a local centre of refreshment and entertainment with an ample theatre, a concert hall, a dance hall, a gallery, a British restaurant, canteens, cafés and so forth.

Keynes has long been accused of waging a war of economism against politics, elevating the economist above the statesman and thinking that the moral and political disagreements of a democratic society could be sidestepped or overcome by economic technicians and technocratic solutions.

... Keynes conceded that planning of the sort he was proposing “should take place in a community in which as many people as possible, both leaders and followers, wholly share [the planner’s] own moral position.” Yet he knew that his moral vision of an economy of cultural greatness and aesthetic excellence was not widely shared. ... Perhaps that’s why he found himself ... retreating to a position long familiar to philosopher-kings, calling for planners whose power could be safely exercised because they were “rightly orientated in their own minds and hearts to the moral issue” and because citizens had been reeducated according to the principles of “right moral thinking.”

... Keynes set out a second path for the future, one that he hoped would diminish the importance not just of money but of economic concerns altogether, without making any assumptions about what people believed or wanted from life. It was a vision of abundance and plenty, a world beyond scarcity, which made the hard power and hard choices of liberal socialism, as well as the requirement of democratic agreement about ultimate ends, unnecessary.

Corey Robin, The Trouble with Money (The New York Review, December 22, 2022)

Monday, March 22, 2021

Politics is the systematic organization of hatreds.... Practical politics consists in ignoring facts.

Henry Adams

Wednesday, March 03, 2021

The market could only reward ideas that turned a profit. Nobody stood to profit from clean parks; they were just nicer to live with than dirty parks. But if nobody made the political judgment that clean parks were better, a society organized around profit incentives from production alone would almost automatically end up with dirty parks. The market was not an impartial guide to the beliefs of the public, and some of its verdicts were crazy…. When public goods fell into disorder or neglect, people found them unpleasant and satiated their desires with what the market had to offer…. The economic organization of society was devoted not to maximizing social comfort and harmony but to satisfying the consumer desires created by advertising and production itself. And that in turn was hampering society’s ability to grapple with poverty. 

Kenneth Galbraith, according to Zachary D.Carter in The Price of Peace

Tuesday, March 02, 2021

Though his American followers would pursue fine-tuned tax-and-spending plans to lift demand during recessions, Keynes instead called for the government to manage future stages of overall economic scarcity through direct investment spending…. the government should seek “to prevent large fluctuations” in employment by enacting “a stable long-term programme” that would spend money on things like infrastructure, factory equipment, and scientific research. 

Zachary D.Carter in The Price of Peace

Friday, February 26, 2021

[Keynes argued that] money...was an inherently political tool. It was the state that determined what substance—gold, paper, whatever—actually counted as money—what “thing” people and the government would accept as valid payment. The state thus created money and had always regulated its value.... The very idea of capitalism required active state economic management—the regulation of money and debt.

Zachary D.Carter in The Price of Peace

Wednesday, February 24, 2021

It is not a correct deduction from the principles of economics that enlightened self-interest always operates in the public interest.

 
John Maynard Keynes, The End of Laissez-Faire, as quoted by Zachary D.Carter in The Price of Peace

Friday, November 27, 2020

Democracy or Globalization?

Global markets suffer from weak governance and are therefore prone to instability, inefficiency, and weak popular legitimacy…. If you want more and better markets, you have to have more (and better) governance.  Markets work best not where states are weakest, but where they are strong.... Even though it is possible to advance both democracy and globalization…this requires the creation of a global political community that is vastly more ambitious than anything we have seen to date or are likely to experience soon.  It would call for global rule making by democracy…. Democracies have the right to protect their social arrangements, and when this right clashes with the requirements of the global economy, it is the latter that should give way. 

Dani Rodrik, The Globalization Paradox: Democracy and the Future of the World Economy

Sunday, September 06, 2020

THE MASS of men serve the State thus, not as men mainly, but as machines, with their bodies. They are the standing army, and the militia, gaolers, constables, posse comitatus, etc. In most cases there is no free exercise whatever of the judgment or of the moral sense; but they put themselves on a level with wood and earth and stones; and wooden men can perhaps be manufactured that will serve the purpose as well. Such command no more respect than men of straw or a lump of dirt. They have the same sort of worth only as horses and dogs. Yet such as these even are commonly esteemed good citizens.

Others—as most legislators, politicians, lawyers, ministers, and office-holders—serve the State chiefly with their heads; and, as they rarely make any moral distinctions, they are as likely to serve the devil, without intending it, as God.

A very few, as heroes, patriots, martyrs, reformers in the great sense, and men, serve the State with their consciences also, and so necessarily resist it for the most part; and they are commonly treated as enemies by it.

Henry David Thoreau, The Duty of Civil Disobedience

Sunday, May 24, 2020

Life in the COVID-19 Age

The snare in which humanity has been caught is an economics—great industry and commerce in service to great markets, with ethical restraint and respect for the distinctiveness of cultures, including our own, having fallen away in eager deference to profitability....The prestige of what was until very lately the world economic order lingers on despite the fact that the system itself is now revealed as a tenuous set of arrangements that have been highly profitable for some people but gravely damaging to the world. 

Marilynne Robinson, What Kind of Country Do We Want? (NYRB)

Tuesday, April 14, 2020

The laws keep up their credit, not for being just, but because they are laws; 'tis the mystic foundation of their authority; they have no other, and it well answers their purpose. They are often made by fools, still oftener by men who, out of hatred to equality, fail in equity, but always by men, vain and irresolute authors. There is nothing so much, nor so grossly, nor so ordinarily faulty, as the laws.

Montaigne

Tuesday, January 28, 2020

“Debt, the private money that has fueled capitalism since its inception, is coded in law and ultimately relies on the state to back it up,” by way of the courts under normal circumstances and through bailouts if a debtor is too big to fail:  The history of debt finance can therefore be retold as a story about how claims to future pay have been coded in law to ensure their convertibility into state money on demand, without suffering serious loss…. By dressing private debt in the modules of the legal code of capital, it is possible to mask the liquidity risk for a while, but not forever. Whenever investors realize that, contrary to their expectations, they may not be able to convert their debt assets into cash, they head for the exit; and if many do so simultaneously, this will precipitate a financial crisis.

Adam Tooze (quoting Katharina Pistor), "How ‘Big Law’ Makes Big Money," NYRB Feb. 13, 2020

Monday, January 27, 2020

Sunday, October 27, 2019

The justice which in itself is natural and universal is otherwise and more nobly ordered than that other justice which is special, national, and constrained to the ends of government.

Montaigne

Monday, July 22, 2019

They who retire themselves from the common offices, from that infinite number of troublesome rules that fetter a man of exact honesty in civil life, are in my opinion very discreet.

Montaigne

Thursday, May 09, 2019

Lying is a base vice....  Our intelligence being by no other way communicable to one another but by a particular word, he who falsifies that betrays public society....  it breaks all our correspondence, and dissolves all the ties of government. 

Montaigne

Friday, August 24, 2018

Let us boldly appeal to those who are in public affairs; let them lay their hands upon their hearts, and then say whether, on the contrary, they do not rather aspire to titles and offices and that tumult of the world to make their private advantage at the public expense. The corrupt ways by which in this our time they arrive at the height to which their ambitions aspire, manifestly enough declares that their ends cannot be very good. 

Michel de Montaigne

Sunday, November 05, 2017

Weber was wrong: the modern world is not disenchanted (even if secularists pretend otherwise) but a continuation of Christianity by other means. Whether liberal, communist, fascist, or authoritarian, every polity relies to one degree or another on the persistence of charismatic authority and the (usually disguised) theological legitimation of political power.


Benjamin Nathans on Yuri Slezkine'd  The House of Government: A Saga of the Russian Revolution in the New York Review of November 23, 2017

See also Freud and Plato - The Politics of the Soul (Pt 1)

Friday, June 09, 2017

Virtue and ambition, unfortunately, seldom lodge together.

Michel de Montaigne

Sunday, March 20, 2016

Capitalism is a partnership between governors and merchants that secures the power of both.... merchants grow rich because state power protects them or looks away when the time is right.

Martha Howell, The New York Review (April 7, 2016)